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Vetoing Cooperation: The Impact of Veto Players on International Trade Agreements.
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Vetoing Cooperation: The Impact of Veto Players on Preferential Trading Arrangements
Abstract
Since World War II, preferential trading arrangements (PTAs) have become increasingly pervasive features of the international economic system. A great deal of research has addressed the economic consequences of these arrangements, but far less effort has been made to identify the political factors leading states to enter them, especially the domestic influences on PTA formation. We investigate the domestic political factors affecting whether countries enter preferential trade agreements (PTAs). We focus on the number of veto players within a country and hypothesize that the probability of forming a PTA declines as the number of such players rises. Our data, covering 194 countries from 1950 to 1999, strongly support this hypothesis. Holding various political and economic factors constant, increasing the number of veto players within a country reduces the probability of signing a PTA by a sizable amount.
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Vetoing Cooperation: The Impact of Veto Players on Preferential Trading Arrangements
Abstract
Since World War II, preferential trading arrangements (PTAs) have become increasingly
pervasive features of the international economic system. A great deal of research has addressed
the economic consequences of these arrangements, but far less effort has been made to identify
the political factors leading states to enter them, especially the domestic influences on PTA
formation. We investigate the domestic political factors affecting whether countries enter
preferential trade agreements (PTAs). We focus on the number of veto players within a country
and hypothesize that the probability of forming a PTA declines as the number of such players
rises. Our data, covering 194 countries from 1950 to 1999, strongly support this hypothesis.
Holding various political and economic factors constant, increasing the number of veto players
within a country reduces the probability of signing a PTA by a sizable amount.
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